Means Testing for Part D Premiums

  • Originally published December 9, 2010 , last updated October 14, 2015
  • Medicare

Starting in 2011, Part D enrollees whose incomes exceed $85,000 (for individual tax return) or $170,000 (for joint tax return) will begin paying more for their Part D premium.

The Part D premium increases, known as means testing, are based on the same income thresholds as Medicare Part B means testing.

2011 income thresholds are as follows:

2011 Income Thresholds (single)

Less than $85,000

$85,000 – $107,000

$107,000 - $160,000

$160,000 $214,000

$214,000 or more

2011 Part D Additional Premium (monthly)

$0

$12

$31.10

$50.10

$69.10

2011 Part B Premiums

(monthly)

$115.40

$161.50

$230.70

$299.90

$369.10

Part D plan members will continue to pay their regular premium to their Part D plan, but the income-related adjustments shown above will be paid to Medicare. It will be deducted from their monthly Social Security check.

These additional charges are sure to catch some seniors off guard. Some who might be subject to the additional charges are those who own a business, those who are earning farm or investment income, seniors who are taking installments from their 401(k), or those selling a home for a profit.

Be sure you’re talking to your clients who might be affected.